Life insurance is arguably the best kind of insurance protection that one can subscribe to since it is focused on your families well being. There are many types of insurance coverages offered by different one but perhaps the most common one and arguably one of the best is guaranteed universal life insurance.
What is Guaranteed Universal Life Insurance?
Just like the name suggests, it is a life insurance product that offers you guaranteed protection for a set period of time at a set rate. This kind of insurance is also known as GUL insurance or permanent term life insurance and it falls right between whole life insurance and term life insurance. It offers affordability just like term life insurance and permanence similar to that of whole life insurance. Its premium and level rates last well into old age.
Term life insurance is an insurance coverage is particularly popular because it provides a lot of benefits in case the insured passes away. The reason for its popularity is because it offered at a relatively low price compared to the other available options. However, this probably has to do with the fact that it is not a life-long insurance package. It is designed to provide a safety net to the policy holder’s family in case he/she dies.
Permanent life insurance, just like the name suggests is designed to cover policyholders throughout their lifetime. Beneficiaries receive a payout in case the policyholder passes away. Most people purchase this insurance package so that they can cater to their funeral expenses or even provide some wealth to their families while avoiding taxes.
Guaranteed universal life insurance tries to bridge the gap between permanent life insurance and term life insurance and it is also supposed to last an entire lifetime. It is, therefore, one of the most sensible products, especially since many other life insurance cover packages usually become more expensive or limited the older you get. The good thing about GUL insurance s that it does not have expensive management fees and your monthly premiums remain low.
Guaranteed Universal Life Insurance Quote Examples
As noted earlier, GUL insurance can go for as long as your preferred duration. Below are some quotes that may demonstrate how much you will likely pay depending on age.
- Mutual insurance of Omaha will provide a guaranteed universal life insurance cover to a healthy 21-year-old non-smoking female with a $250,000 face amount. The insurance firm will require her to pay a $60.52 monthly premium until she is 121-years-old.
- The same insurance firm will provide the GUL insurance cover to a 35-year-old non-smoking make at $250,000 face amount and a $124.76 monthly premium until he is 121-years-old.
- You will likely pay a $190.19 monthly premium to Mutual Insurance of Omaha if you are a healthy non-smoking 50-year-old female with a $250,000 face amount until you are121-years-old.
- The monthly premiums go up significantly especially if you are a smoker. For example, you will pay a $411.68 monthly premium if you are a 50-year-old male that smokes. The big gap between a smoker and a non-smoker highlights the fact that smokers are at a higher risk of illness.
- You will pay a $632.42 monthly premium if you are a 60-year-old non-smoking male who wants to take out a guaranteed life insurance cover with Mutual of Omaha at $500,000 face amount.
The above quote examples demonstrate that it is better to take out the GUL insurance cover at a young age if you want to pay a lower monthly premium. Non-smokers are also at an advantage because they get to pay lower premiums than their smoking counterparts.
Keep in mind the company above is not the only option for you. The company best for you will depend on your specific situation.
Guaranteed Universal Life Insurance Coverage Cost and the Different Health Ratings
GUL insurance allows you to customize your policy to your liking in terms of budget, needs, and life expectancy. If you happen to sign up for the guaranteed universal life cover at the age of 60, it is significantly less expensive than term life. GUL insurance is not characterized by any investment risks and no investment value is required. It will guarantee your monthly premium until the preferred age period you selected while signing up for the cover, even if it is past 100-years-old.
The guaranteed universal life insurance package is calculated based on different health classes namely Preferred Plus, Preferred, Regular Plus, and Regular. These rating classes are considered when determining the premiums as seen in the quotes below.
The above is a term life insurance for a 30-year-old man in Massachusetts in the preferred Plus category at a $250,000 face amount and a monthly average of about $100. The same man would have to pay a monthly premium of around $109 to insurance firms in Massachusetts. He would have to pay a monthly premium of more than $127 if he chose the Regular Plus package and also above $127 per month on the Regular class. Mutual Omaha and Protective are some of the insurance firms that offer this type of insurance coverage.
The same cover for a for a 30-year-old female on the Preferred Plus health class actually attracts a lower monthly rate than that of a 30-year-old male counterpart. This is perhaps because men are considered to have a higher risk capacity than women. The same woman would have to pay an average of $93 per month on the Preferred health class, around $109 for the Regular Plus health class and around than $109 per month on the Regular health class.
A 40-year-old male would have to pay over $130 per month on the Preferred Plus health class with a $250,000 face amount and more than $144 on the Preferred health class. His Regular Plus health class monthly premium would amount to more than $173 while his Regular health class would amount to more than $173. The monthly premiums for a 40-year-old would amount to over $117 on Preferred Plus, over $118 on Preferred, over $146 on Regular Plus and over $146 on Regular.
The GUL monthly rates for a 50-year-old male would amount to more than $194 on Preferred Plus, more than 215 on Preferred, more than $253 on Regular Plus and over $253 on the Regular health class. A female counterpart’s monthly fees would be over $162 on Preferred Plus, over $180 on Preferred, over $210 on Regular Plus and over $210 on the Regular health class.
The Pros and Cons of GUL Insurance
Guaranteed universal life insurance is characterized by various advantages listed below which make it ideal if you are thinking of subscribing:
- GUL insurance is easy to procure since it does not have a lot of technical requirements.
- The insurance seeker does not have to go through a medical examination.
- The insurance seeker will not be required to answer any medical questions.
- The insurance firm does not issue confusing questionnaires for this particular insurance package.
- The registration process is quick and thus there are no delays.
- The insurance firm also guarantees the rates.
Cons of GUL insurance:
- There is a cap on the insurance coverage that you can select.
- The cover might be more expensive than the regular life insurance options available.
- GUL insurance has a two-year graded coverage.
- Smokers are at a disadvantage since they have to pay more than their non-smoking counterparts.
A graded policy is where an insurance cover such as GUL is characterized by limited coverage within the first few years. This means some benefits will not initially be available to the policyholder. However, graded policies are usually structured such that the coverage increases over the years until it reaches maturity.
Guaranteed universal life insurance is one of the best insurance packages that you can take to help your family in the event of your death. It is a good alternative that will cater to your medical bills or funeral expenses and a great way to avoid overwhelming your family with expenses.
The good news is you’re in the right place. Here at CFA we specialize in Guaranteed Univeral Life Insurance and can help you get the best rate on the market. We represent a variety of A-rated life insurance company and do all the shopping on your behalf, on no extra cost to you. Fill out the quoter on this page to see what the rate would be for you or call us at 212-573-5563 and we’ll run some quotes for you!